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HRSR INFORMATION 04-23-2001 r:; MA • City of Elk River MEMORANDUM TO: Housing & Redevelopment Auth•rity FROM: Catherine Mehelich, Director of conomic Development DATE: April 23, 2001 SUBJECT: Ron's Foods Property Sale Staff has received information regarding the sale oi the Ron's Foods property located on Hwy 169 and 3td Street. According to the listing a ent, Edina Realty, the property sale price is $1.4 million for the 2.38-acre site,which include. a 24,400 square foot building. The City may consider the sale of the Emporium property to accommodate a larger redevelopment project for the area. The property is zoned C3-Highway Commercial. • • • EikZ -1 River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Developmentr"�'9 DATE: April 23, 2001 �/''�C SUBJECT: 2000 Annual Report Attached is a copy of the 2000 Economic Development Department Annual Report that was presented to the City Council on April 2, 2001. The Annual Report highlights accomplishments and goals of the Housing and Redevelopment Authority. • i \112, ill CONOMIC EVELOPMENT ERIRTMENT r NNUr9LR I � IEPORT 2000 , • Mission Statement Elk River "A historic river community serving as a regional center with a favorable location near the Twin Cities metropolitan area" Our mission is to actively participate in economic development by utilizing available resources to leverage viable and healthy investments in our community. Such investments will create diverse job opportunities as a result ofa stable and growing business and industrial base. We will strive to provide quality services, maintain a favorable tax rate, supply full-cycle housing options for our residents, and foster an environment that will result in substantial growth of our local economy. • EP1RTMENTT1FF Catherine Mehelich Director of Economic Development June 2000 Executive Director, Economic Development Authority Executive Director, Housing& Redevelopment Authority Marc Nevinsld Assistant Director of Economic Development May 1999 Paul Steinman Director of Economic Development 1996—1/2000 Support Staff • Alice Heinecke, Executive Secretary Tina Allard, Secretary • iIER IN ZEVIEW TAX INCREMENT FINANCING A revised Tax Increment Financing policy was adopted by the City Council in March. The revisions identified minimum requirements for the use of TIF and incorporated provisions of the new business subsidy law. The only new TIF district created in 2000 was TIF 21 for the Opus/Softpac project. The pay-as-you-go district will write down the $700,000 land costs associated with the project over a period of eight years. TAX REBATE FINANCING Also referred to as tax abatement,Tax Rebate Financing(TRF) is a relatively new economic development tool. The mechanics of the tool are similar to TIF in that tax dollars can be used to pay for development costs. The primary difference is that each government entity elects to rebate its portion of the project's taxes. Subsequently,TRF generally results in fewer dollars for a project than TIF, but allows for greater flexibility in the application of those dollars. In April the City Council adopted Tax Rebate Financing policies,which set parameters for its use and incorporated the required provisions of the business subsidy law. Upon recommendation from the EDA, the City Council also authorized the use of IRF in the construction of an 18,000 sf multi-tenant industrial building in the McChesney Industrial Park. Sherburne County also participated in the project. ECONOMIC DEVELOPMENT MICRO LOAN PROGRAM One micro loan was made in 2000 to Ultra Image Powder Coating. The loan was set up as a participation loan with the First National Bank of Elk River and was used for a building expansion and equipment purchase. The lawsuit with Northstar Diecasting was also settled in 2000 when the company agreed to pay$1000/month for 36 months. The loan fund ended 2000 with a cash balance of$442,528. BUSINESS INCUBATOR In early 2000, Watermark ceased operations and vacated its suite. Also in 2000 SolarAttic, due to vacancies at that time, entered into a twelve-month market rate lease with the EDA for its existing incubator suites. The company vacated 2500 sf of manufacturing space in December of 2000, but will remain in its smaller office space until April of 2001. Two new companies signed leases for incubator space in 2000.Vertical Publishing,which provides an internet presence and archiving service for small publishers and trade magazines leased 2200 sf. Integrated Power Solutions,which has developed a manufacturing process for a solid state battery that can be integrated into the circuitry of any electronic device, leased 1500 sf of space in the incubator and plans to move into market rate space in spring of 2001. • MARKETING ACTIVITIES Strategic Industrial Marketing Plan In the Spring 2000 the EDA hired Duckor&Associates,Inc. and appointed a seven-member taskforce to complete a Strategic Industrial Marketing Plan,which was adopted in June. The three-year plan outlines activities necessary to attract and grow light industrial businesses. Staff began implementing activities within the Plan including identifying key accounts and compiling a site inventory. Customer Service &Siting/E.,Expansion Process Plan Providing exceptional location site services is key to expanding Elk River's industrial base. Duckor&Associates,Inc. began facilitation of a Customer Service and Siting/Expansion Process Plan with key staff persons who are involved in industrial developmentojects Completion of the Siting/Expansion process is anticipated for Spring 2001. p Communication Strategy&Brand Plan Duckor&Associates,Inc. began facilitation of a Communication Strategy and Brand Plan with a staff taskforce in Fall 2000. The tagline "Light Industrial Hub of the Northwest Metro"was selected to position Elk River within the industrial business and real estate development community. The Communication Plan is anticipated for completion will result in the creation of coordinated and professional promotional materials and moo agge d s In October, the City of Elk River participated with the MN Department of Trade Economic Development in the recognition of MN Manufacturers Week. and Industries, Elk River block plant was sponsored by the EDA. A tour of Aggregate Holt&Jackson Development The City approved a proposal from RJ. Development,L.L.P. in October owned Holt&Jackson site for$350,000. H.J.Development submitted development plans to construct a 14,000-square foot multi-tenant retail facility on the site. The tenants of the fa will include a day spa, upscale meat retailer, and coffee shop. Closin of the l clhty construction of the project is anticipated to occur Spring 2001. g and sale and CENTRAL BUSINESS DISTRICT ACTIVITIES King&Main Development The Housing&Redevelopment Authority considered four proposals for the TIF No. 16 King and Main redevelopment site. The HRA selected the eme development of t National Bank of Elk River,N.A.,who offered$175,000 for the site. Construction of a proposal by First 25,000-square foot office building began in November and completion is antic 2001. The sale proceeds and tax increment generated by the new constructioniwilled for June the HRA for the initial acquisition, demolition and cleanup of the redevelo reimhurse occurred in 1996. pment site,which Downtown Redevelopment Plan Authorized In October the HRA and City Council held a worksession to discuss future central district redevelopment activities. Design for the replacement of the "red" sidewalks siness PUtilities electric discussed for construction in 2001 in conjunction with Munici al ecli was line location project. The HRA authorized staff to complete a downtown redevelopment to provide direction for future redevelopment activity in the CBD. The Redevelopment plan n IIIwill include an inventory of properties and constraints,visioning process and an implementation plan. Completion of the plan is anticipated for Fall 2001. Jackson &Main St Properly In May the EDA transferred its Jackson and Main Street property to the City of Elk River in order to preserve the site for green space within the downtown. BUSINESS PARK DEVELOPMENTS Vest Business Park (EDA propery) The EDA approved a proposal for the development of its Joplin Street property by Gary Santwire/Rivers Crossing,Inc. The development includes the construction of two 22,500- square foot buildings. The northerly building, owned by Equity Management, Inc. (Linda Norha),will provide needed leasable light industrial space in the community. The southerly building, owned by David Ripplinger(Track of the Wolf,Inc.),will create up to 10 jobs at $10/hour wage. The EDA acquired the site in 1997 with tax increment finance revenues and contributed the land value and utility extension costs in an estimated total amount of $258,100 to the project. Opus Northwest, L.L.C./SoftPac Industries,Inc. (Emmerich propery) In July the EDA approved a tax increment financing request from Opus Northwest,L.L.C. and SoftPac Industries,Inc. for the construction of a 75,000-square foot flexible pouch packaging facility. The City created Tax Increment Financing District No. 21 to provide 411 $700,000 for the 14-acre land acquisition. The EDA had been marketed the site through a joint marketing agreement since 1997. SoftPac Industries will create up to 60 jobs, paying minimum wages of$10/hour. I Elk Path Business Center(Wilson propery) The City extended Business Center Drive to Waco Street and installed sanitary sewer, watermain, and storm sewer to service the Hoyt Partners property. The 80+acres of property was rezoned for Business Park and Highway Commercial development. Development by Allina Medical Clinic is anticipated in 2001. Elk River Business Park Groundbreaking for the construction of the first of several buildings planned for Elk River's East Business Park was held in September. The initial building will be a 52,000-square foot light industrial facility. The project is a development between Amcon Construction, Brookstone,Inc., and Fischer Sand and Aggregate Co. A total of 40-acres is included in the business park that is located off the newly constructed Twin Lakes Road. • DEP1' IRTMENT EjOelLS FOR 2001 The City of Elk River Strategic Industrial Marketing Plan that was ad teo outlines the following major goals and activities for 2001: P d in June 2000 I Product Offering • Develop attractive signage for East/West Business Parks • Develop East/West Business Park Fact Sheets • Establish joint development agreement with Gagne and Wilson • Utilize GIS (Geographic Information System) to manage commercial/industrial land and building inventory • Utilize City of Elk River's brochure and fact sheet • Develop strategy for marketing/development of EDA (Brown)property II. Product Delivery Process & Client Service Strategy • Complete and implement Customer Service and Siting/Expansion Process Plan • Develop roles &responsibilities of process participants • Design and develop proposal prototype • Select and install a software account management system • Develop a "How to do business with the City of Elk River"guide • Conduct project update meetings as needed III. Marketing Strategy • Research and gain working knowledge for Industrial Machinery, and Electronic sectors. Fabricated Metal • Acquire working knowledge for all state,regional and local economic development programs,products and services IV. Key Account&Lead Generation Strategy • Meet with identified key accounts on a regular basis V. Pricing Strategy • Revise funding policy and application forms to be consistent with new communication design and format VI. Communication, Promotion, and Advertising Strategy • Revise and update Web site to be consistent with new communication design gn and • Complete and implement Communication Strategy and Brandin Plan • Place advertisements in trade journals g • Conduct groundbreakings and grand openings for businesses • • Participate at DTED's Manufacturer's Week to showcase local firms i• EPFIRTMENT V1OMLS FOR 2001 The Strategic Industrial Marketing Plan will assist the City in addressing the major issues and goals identified in the City of Elk River Economic Development Strategic Plan (revised 1999). The Economic Development Strategic Plan includes the following major goals: I. Industrial Base • Attract new business to increase the city's industrial base II. Business Retention and Growth • Retain and grow the city's existing business/industry III. Marketing Strategy • • Create and implement an industrial strategy to develop the city's business parks IV. Develop/Redevelop East Highway 10 and the Central Business District • Undertake activities that facilitate development/redevelopment on E. Hwy 10 and CBD • Develop criteria for designating redevelopment areas • Complete analysis and Redevelopment Plan for the Central Business District to guide future redevelopment activities • Identify redevelopment areas • Complete sidewalk improvement project • O Z O ct OIn A• 0 €666 dilhor P 10 reli iir Y ,_c..�r�/� ilitiig /�w_, .`5,1► wasis-it 413, Fdirm 111‘! r1 \\ I( H iZAWA::J Jellig 70 Cr F. i.m\vii -r14 is ' !_Q _ - V Iee �"iEcn M , �f ci) ,3'q..;.;-DU 'Ilil,:.'.;;;;:Z.;;;;; W 11 al f D ,.•11:.,,,,,. ...,,:::...,:z.z,z,..;,:::.,i. 111:111 , i ! W 1- It 6 8 I 1 II • 1 R ,i , ill t i III1 i 1331118 OOYM EAST BUSINESS ESS PARK PHASE7AND I ice, 1: 0 15 - r,7 4 �- Se 11 ;�` E , r= i ' ` It 1 - LI 1..2,1 1 I L v N 'N' ' , .. ._ I - 4 r 1 t I • z" r lz2vikgfF-'7,,i; .._F .,. . i 1 r _ \ .Ella z �J e I k "_-__..-I I. 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'-.-..' -..',1 .tri:„ .,.. „,... .., .. .. - . 4444,i, • „:4t.__: ..,.., _ . :, •,, 4�, AFt �/, Cxy of v' Elk River j,,F — .• • a ,G ,a, eLigl=t Indus 1i f �ti-,v 0 re Ile, eiLiAt 01 Et4 kzvt4'is anything, ® In iii N Ythw:i it is a confluence of histories. , �`z � € q around 2,000, the same size it was just ` �° LJZ Cit —k•, after the Civil War. Part of the'reason for From Dakota and Ojibwe nation skirmishes �, .,� Y � � ; in the late 1700s to industrial park develop "- - y �F � ti :=r' the rapid growth,according to Nevinski,is ments in the 1970s, Elk River is a veritable '� due to recreation. time capsule of Americana.Nestled between � `j_•,. _ "Elk River is on the way to where people forested hardwoods and.prairie along the - _ 7`° m t go to relax,"he said."U.S.10 and U.S.169 Mississippi and Elk Rivers, the city, eight -',-f-'1.,. ----'''`,-.;,n-, 3 ,, .-,••:-., carry a great deal of traffic.The city is on the . 9 • "' miles north of 1-94 and just minutes from t = Y way Brainerd and the cabins up north.And Minneapolis, is a blend of both rural s tt4 '� itdoesn'thurt bein ust eiht miles north of America and commercial convenience. But f 1-94,which links ustothe Twin Cities.The much has changed since David Faribault „•::.•:'--.1,.::.-,T.;..;...-17.,,,:: I;, -�4 °; commuting advantage of working in Elk River built the first trading post on one of theversus the Twin Cities is the`reverse'com town's bluffs in 1846. t z - mute.It's a much easier drive for commuters "We're growing at a solid four percent a P coming to Elk River than it is driving into the year,”said Marc Nevinski,the city's Assis- 4 • ;; ' Cities." tant Director of Economic Development. .; _ .1 *` ,7` .- Of course the close proximity of the Twin "We've seen a considerable amount of resi- -,,,„44,-.: " Cites to Elk River is another reason why corn- - --commercial development in the ` ,"� - ponies are flourishing in the historic town. past decade or so.To balance that growth, 3. 4 Manufacturers can get supplies from metro the council and EDA (Economic Develop- �,---- vendors in same-or next-day deliveries to mentAuthority)have taken steps to increase reduce customer turnaround times. "Elk industrial development in the city." River,"Nevinski said,"is fast becoming the light Nevinski cites the zoning of over one hundred roscCloud industrial hub in the northwest metro area. and fifty acres as business park,the creation of a "We did a business survey last year. One of 0tegic economic development plan,and the es- _,, el the things that our businesses consistently n ,-a... 0itegic of a location site process plan to was Elk River's excellent access to vendorsL, better serve the city's industrial clients. .. services0 in the Minneapolis-St.Paul area.Addi- "The goal,"Nevinski said,"is to make the de- Elk River tionally,we have a lot of those services right here velopment process as smooth as and seamlessin Elk River. Tool grinders, hardware stores, of- as possible for businesses looking to locate here." 101fice supplies,printers and publishers,quality ven- In 1872,the village of Elk River incorporated dors so that businesses here don't have to keep and became the county seat. A little over 100 running into the Twin Cities-we're getting a nice years later, Elk River consolidated with the sur- '"' y, group of businesses that serve one another." rounding township, creating a city of 44 square ElkRiverislocaled miles-one of the largest in the state. The town fo�+�the Tvin Cities " .' r.4.44.‘44 p,...44. witnessed some moderate growth in the 1970s, .,'4 In the 1970s,the city developed the Elk River but nothing like the influx of residents in the'80s. i81 v Industrial Park not far from the center of town, "We have the residents and all the amenities- sLco"a a conglomeration of industries on sprawling, the retail shops and restaurants-and now we're Elk neapol• Mi ��'�i well-manicured lawns.Though the plan eventu- looking to expand our industrial base.And that's 5t "' '1" `: ally called for the city to take over the park,the been happening,"said Nevinski,who in addition T city had yet to establish an economic develop- to Catherine Mehelich, the department's di-` merit authority. Thus, the park was devel- rector,comprises one half of the city economic oped by a local development corporation of development staff. The city's staff also in- Marc Nevanskl a tt enne�t�enei, ^� . over 100 Elk River citizens. One of the ma- cludes a financial director, a three-person E nr��rc o m t ; � � , jor players in Elk River development has al- planning department,a six-person inspections � �« � -�' ways been First National Bank of Elk River department and a public works staff. In addi - ����,, i z � �7 ,.: president and CEO Dick Gongoll. tion, the city has a 30-member police force '� , � s, . "One of our goals as a community was and a volunteer fire department that includes �� s .;,"o to try and provide work here so people didn't ilitime fire chief. 4. have to commute," Gongoll said. "It's also lipth a population of close to 18,000, Elk `'�i'k = a important in Minnesota to have a good cl River is projected to exceed 20,000 in 2002. mercial base because of the tax structure That's unprecedented growth,considering that , .' we can better support our schools that way. in the 1970s the population of Elk River was - t V. k C „ 'P�€��t�' �W k^x f�'� ��1'.S 3FS* yam. 1.”- t--,.,.-?' been fortunate to have people 1 �„ �K,�,✓;Sy u!�P71B�liia7lt ` vor 'We'veur been who are m , , � companies such as Elk River Machine 0 oEn- those community and got a e aggressiveggr our 1 !-a Company and Metal Craft Machine &osely competitor,and we,the Loge ofElkRiver, — E��,_„ a } .f __' gwhat thees are strong representations rinsnd - for some of the financing. We wanted toYY .- 4 ,,,, what city is trying to bring to its Indus make Elk River a shopping area, a desti- trial base. nation area as opposed to a drive-through Workforce issues are a concern for all town." -T4 . ..- -{ ` Imo`' businesses in today's economy. However, Mission accomplished. Gongoll and ", " �� 4,� _- .� the Elk River area appears to have a high others got their growth, and then some. , 4- '� ry 1 ' � concentration of skilled labor. "We seem "I believe the growth happened a little to have a large pool of people in the area yii -� fasterthan we projected,"Gongoll said. Our � : r;-t:::'''''''' � � ��� �i � .� " ���'� � � ����b with trade skills," Nevinski said. He also residential growth has precipitated our retail 1 Y �' noted that Elk River firms pull people from sector,and now we're working on stimulat- the Twin Cites, St. Cloud, and even from ing our industrial base.But overall,I'm very more rural areas of the state. pleased with our strong and vibrant econ- The breakdown of the city's industrial omy." base bears this out.The number of Industrial Besides his bank duties,Gongoll is one of machinery-related companies has reached governors of the Elk River Investment ': 18 while the mineral and rubber-plastic in- fiveClub,an LLC of 22 members.One of the chief dustries take a distant second with four com- goals of the club is to work with the City of Elk panies each.The industrial-machinery cat- River in getting new companies into the city's 4 it,; ' ' f � � „ - : Y - . egory also leads in the employee category incubatorprogram. ®� with 28 percent of the industrial workforce, "We try to coordinate,"Gongoll said "our ;3 ;' ` , . �, followed by the fabricated metal and elec- efforts with the city to help emerging busi- w tronic equipment sectors with 22 percent et out of the garage,so to speak, each.Mineral employment accounts for 15 -_- vskp he incubator program.Currently the percent ofthe workforce while club is working with rout or fiveueyt : rubber plastic businesses oys nine percent. at this time. Our club gets a commitment ��_ from the proprietor that his or her business But those numbers will soon turn old.To balance residential and retail growth,the city remain in the incubator or at some Inca- �" T Fs created two new industrial parks,appropri- willtion in Elk River.It's venture capital that's for � � y �� �'���-�� -�����_ „,,,,,42z.--` �, ately dubbed the East and West Business businesses River. venture in Elk River.”grow `� °� "���' ``3 ;� �- 4 :� Parks. Phase I of the East Park, a 40-acre When the city did take over the business � : tract that will include a 50,000-square-foot )ark,there were approximately half a dozen multi-tenant building,will have access to a r th availereaThatparkwasalfy four-lane fully built- J. industrial by U.S.l 169e and the The park is gut in 1999 and is home to companies such 7.s�...-- � ��_ �� � r-,--1--:=1- -,t,'"1:1;', �� � also bordered by U . Burlington s the Tescom Corporation(high purity and � �` ' � '} i Northern Railway.Adjacent to the 40 fetes idustrial controls),Alltool Manufacturing lies another 90 acres which will be Phase netal fabrication),E&O Tool&Plastics(pias- II of the East Business Park. Just to the s)and the Custom Conveyor Corporation south of Phase II, across 173'° Street, is onveyorequipment).And there's the Cretex the site of the proposed North Star Corti- impanies Incorporated,makers of concrete i 64; t dor Station,a depot that will run from Rice ders for bridges and culverts, a cum (north of St.Cloud)all the way into the Twin •ny that has stayed in Elk River and has 40 n,no• Cities. I iived, and a variety of other industries. ACRES "The commuter eond U.S. a istheHorizon storm \ f; , — _ erIme willconnectitieshe C-1 light rail system in the Twin Cities,' stirs Company that moved to Elk River Fhb f � �����"�` -‘�� � Nevinski said, "and run down. to the air- lugust of 1998: In two years it has ex- •o. + f port,eventually going into St.Paul and the ded its workforce to 30 and projected AC-ES,tili °; outlying suburbs. Right now we have a s are two million dollars. Horizon is 1 .. Nor,: ' ° double track that runs through town that ora ope,serving customers ; �" •r ;+ '1' averages 50 to 60 trains a day.We do have �t to ast. Horizon Thermoform fromand a rail spur downtown, and some busi �� nesses haveof t.h) ‘;` ..„..._ .\._ \___; advantage of that.' E'a t',B = { ;I 1 us'r1,.,,ss.Pak. l @ E1 Iver FRONTAGE ROAD I 2000 CONSTRUCTION c.,a; Eik River i __.4,4 ' The West Park features adjacent 20- E T- e «� — bills by 30 percent in Ohio and West Vir- nd 22 acre sites that run parallel to U.S. ° , .I ,. , . 0. These sites, which stretch west to ftliAl.. .-= V� ««� ginia.We can also heat a swimming pp," ��41 4 ..�'"""" ambos for around ten dollars a month, as( the Sherburne County Government Cen- ��l �., = ..... posed to$300 a month for natural gas." ter,have been rough graded and the utili- i i � . • - ties-gas,water and electric-are already i lst� Du(,( $G inplace. �b� IW West Business Park On the other side of the Government =-' _ _ _ I z_ Yet the average cost of industrial Center is an 83-acre tract scheduled to I square footage in Elk River will hardly be ready for development in September West Business Park detour a company from setting up shop. of this year. Both the East and West "The price of industrial land here," Nevinski said,"is quite reasonable.From$1 to$1.20 per square foot, Parks sit on major transportation corridors, highways and rails that which includes the improvements. In some nearby areas,that price link the parks to the rest of the state and beyond. "These areas are zoned`business park'and are ideal locations for goes up anywhere'from $2 to$3 dollars per square foot."Yet, there campus environments,"Nevinski said."The design requirements are a bit are other incentives for prospective businesses. we have, but trails, Financially, Elk River is competitive with other communities in the higher than the more established industrial parks ponds and other amenities will be incorporated into theparks as theystate,offering tax increment financing,taxabatementand sub-prime loans develop." p among other tools. "We can also provide assistance to both new and existing businesses f;i,(444, y that qualify,"Nevinski said,"but we're careful not to overburden ourtax- Even though the city is looking more toward embracing the industrial payers.Keeping taxes low is a priority of the council." company to take root and grow within its corporate limits, its arms have and will spread wider. E�" f e "Though we've leaned toward more of the machining,metals and com- Another drawing card for the city is its"Energy City"designation by a puter-electronics companies,"Nevinski said,"we're looking for viable state organization called Energy Alley.Conservation,innovation and de- companies who are looking to stay in the area once they become estab- cades worth of just saying no to pollution has polished Minnesota's emer- d.Companies who will create good wages and make capital invest- ald city as it strives to keep"green." is-we're certainly open to meeting with them in the hopes of inviting In 1998,the Environmental Protection Agency awarded Elk River?-4- them in."Sometimes that means helping companies establish themselves, Project of the Year for the city's flame that burns off methane that fol inside landfill berms;and city environmental-energy leaders meet monthly nonbankable companies who are looking to go public.Candidates for the with state energy leaders in discussing energy matters since the city is city's incubator program are chosen by the Economic Development Au- thority. the state focal point for new energy technology and services.These"en- "We're not necessarily targeting new manufacturing companies for the ergy talks"often produce award-worthy innovations such as"energy houses"that feature a dozen or so energy technologies in each house. incubator," Nevinski said, "but companies offering high-tech prod- ucts or services."The EDA leases the incubator building at a low per- Energy House I,for example,uses a geothermal pump for heating and square-foot cost.The space has been improved and divided into various cooling the interior of the home,using the constant temperature of the earth below the frost line. suites.A company can pay a portion of its rent in cash,and the remainder of rent is bartered for stock. The city is also set to receive one of the largest wind generators in One company currently in the Elk River incubator is SolarAttic,a com- the world. With a height of nearly 200 feet and blades with a diameter pany that developed the technology to recycle the heat that gets trapped in of close to 180 feet, the wind turbine will generate enough power to attics. run 250 homes. "We can take attic heat,"said company founder Ed Palmer,"and put it "Environmentally,"said Stephen Rohlf,the city's building and zoning back into the house to reduce heating costs. Or we can use it to heat administrator,"Elk River has a reputation of being tough but fair.There's a swimming pools or hot water.And when you take heat out of the attic,you lot of mineral mining going on just north of town.When a mineral contrac- won't have to run the air conditioner as much in the summer."While tor was asked,in an environmental context,what the toughest city was. he d ever worked in,he said Elk River.And when he was asked what his developing his energy-saving technology,Palmer worked out of his ga- favorite city to work in was,his answer was the same-Elk Rive rage for years,slowly refining the idea since June of 1984. In August r.That's of'86 Palmer began working full time on his concept, and now he's one of the more honest compliments on our city that I can remember." Minutes from the Twin Cities yet far enough away to have maintained taken it a step further by working out of the city's incubator. Ed Palmer on the Elk River Incubator:"It's been extremely helpful-it got its small-town character,Elk River still offers both industrial and high-tech us out of the garage.The incubator gave us a commercial opportunity opportunities to companies looking to expand or establish themselves. wh customers and investors can come out and see our products and --\(•o ail manufacturing facility. People are a little weary about driv- city orv, imist . ing out to someone's garage in a residential area. It's given us a big Elk River in driving us forward." SolarAttic pool systems are currently used in 33 states, and the 13065 Orono Parkway Elk River, Minnesota 55330 attic units in 16. TDD & Phone: 763-441-7420• Fax: 763-441-7425 "The attic unit has proved," Palmer said, "to cut annual heating www.elk-river.mn.us REPRINTED FROM _i _ t 2001 DOWNTOWN SIDEWALK IMPROVEMENT PROJECT Estimated Project Cost and HRA Repayment to City • Estimated Project Cost $ 280,000.00 Less: Special Assessments 58,500.00 Estimated ERMU Cost 10,000.00 HRA Project Cost 211,500.00 HRA Repayment to City 2001 75,000.00 2002 50,000.00 2003 50,000.00 2004 48,917.93 Total Payments 223,917.93 • City Loan to HRA Principal Outstanding: $ 211,500.00 Interest Rate: 4.50% Interest Start Date: June-01 Term: 5 Principal Payment Year Payment Principal Interest Outstanding $ 211,500.00 June 1, 2001 , 75,000.00 75,000.00 - 136,500.00 June 1, 2002 50,000.00 43,857.50 6,142.50 92,642.50 June 1, 2003 50,000.00 45,831.09 4,168.91 46,811.41 June 1, 2004 48,917.93 46,811.42 2,106.51 (0.00) Total 223,917.93 211,500.00 12,417.93 NOTE: This schedule will be adjusted based on actual project costs. Payments will increase or decrease accordingly. i 4/23/01 Hrafin